Jerusalem, 9 November, 2026 (TPS-IL) — The Israel Tax Authority has published a position paper recommending a new environmental levy on all aircraft departing the country to offset aviation noise and carbon emissions.
Ahead of upcoming state budget deliberations, tax officials proposed levying fees based on aircraft weight and flight distance rather than flat passenger rates. Under the formula, per-flight taxes would range from 1,300 shekels ($410) for small domestic aircraft up to 100,000 shekels ($31,500) for long-haul wide-body jets.
The framework would translate to an estimated price increase of 12 shekels on domestic routes, 58 shekels for medium-haul European flights, and 274 shekels ($86.30) for long-haul routes to North America and Asia.
The Tax Authority projects the levy will generate 1.1 billion shekels ($350 million) annually to fund environmental and public health initiatives.
